Fitbit Inc. is launching its long-awaited smartwatch this fall, hoping to challenge Apple Inc. with a device that offers some functionality that does not require a connected phone.

Beginning in October, Fitbit
FIT, -5.35%
will sell a smartwatch called Fitbit Ionic for $299.95, above the price point of Apple’s
AAPL, -3.96%
Series 1 Apple Watch, but below that of its most recent iteration. While the watch needs to be electronically tethered to a smartphone to access messaging and notification features, users can listen to music through Pandora and will pay for items without using their phones.

Fitbit has been struggling financially in the past year, which has caused analysts to look to the launch of a smartwatch as the catalyst the company needs to turn around its fortunes in the coming holiday season. The San Francisco-based company, which went public in June 2015, has posted a loss in each of the last three quarters after turning a profit in its first seven quarters as a public company.

That financial downturn has taken a toll of Fitbit stock. In the past 12 months, Fitbit shares have fallen 61%, while the S&P 500 index
SPX, -1.66%
has gained 12.5%.

Fitbit has partnered with Pandora Media Inc.
P, -3.70%
so that subscribers to Pandora’s premium services can listen to up to 300 downloaded songs phone-free, and with Starbucks Corp.
SBUX, -0.37%
to feature its app. Without the phone, users can also track runs using Strava and use a weather app powered by AccuWeather. Users can also purchase items that accept contactless payments, through Fitbit Pay, which will be adding the use of cards issued through American Express, Visa and Mastercard.

The new watch appears to be built with fitness enthusiasts in mind, as it can be used during swimming, to a depth of 50 meters, and tracks the activity. Additionally, the watch has personalized, guided workouts with videos on screen and features heart-rate tracking, which Fitbit says has improved accuracy. It is compatible with all phone operating systems.

Fitbit has found its success through fitness-oriented hardware and software offerings. It is the top seller of fitness trackers, less-powerful wearable devices that allow for tracking workouts, vital signs and more with the help of another device, like a smartphone.

Any advantage Fitbit by offering some functionality without tethering to a phone could be short-lived. Apple is rumored to be launching a new smartwatch that has cellular connectivity, meaning it works apart from a phone. Its most recent smartwatch, the Series 2 Apple Watch, introduced last September, is priced at $369 and also emphasizes fitness with a workout app, tracking and water-resistant capabilities.

Fitbit previously launched a smartwatch-like device in March 2016 called the Blaze, which had a stronger battery life than the Apple Watch. That watch did not offer access to third-party apps, which is why Fitbit did not call it a smartwatch, but rather a “smart fitness watch.”

The Ionic watch has a battery life of more than four days. The company will have an open software-development kit released in September so that engineers can build their own apps, and if approved by Fitbit, be listed in their own app gallery. That means that a company such as Twitter Inc.
TWTR, -5.02%
or Facebook Inc.
FB, -5.72%
could create their own apps for the watch.

Alongside the watch, Fitbit is launching Bluetooth headphones, called Fitbit Flyer, for $129.95. It will also offer an updated version of its smart scale, with the Aria 2 also priced at $129.95. The company will offer a special edition version of the watch, in partnership with Adidas, in 2018 that will pull in performance programs from the sportswear company.

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